HOUSTON—Texas and Oklahoma continue to be attractive markets for investors. The class-A industrial markets of Austin, Houston and Oklahoma City are projected to experience decreasing cap rates. Cap rates across the vast majority of all remaining property types in the region are expected to remain flat throughout the second half of 2017 despite recent hikes in interest rates, as indicated in the CBRE North America Cap Rate Survey for half-year 2017.
In the CBD, San Antonio was the only regional market that recorded decreases in cap rates across the board, while all other metros held steady for assets in the urban core. Robert Kramp, CBRE director of research and analysis, Texas-Oklahoma-Arkansas region, says that San Antonio is one of the compelling storylines right now.
“Expect investors to be interested in non-primary markets across the US, such as San Antonio where rates are compressing slightly for office and industrial product,” Kramp tells GlobeSt.com. “A market such as San Antonio is competitive with its steady residential growth, expanding local economic base and healthy housing market. These essentials continue to attract new occupier demand while buttressing local commercial investment fundamentals.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
